Value of building work put in place: March 2018 quarter

Residential and non-residential building activity volumes fell in the March 2018 quarter, Stats NZ said today. The fall in building activity takes into account the effects of higher construction costs and typical seasonal patterns.

"Total building activity volume decreased 0.9 percent in the March 2018 quarter, following rises in the December and September 2017 quarters," construction statistics manager Melissa McKenzie said. "The fall in the latest quarter comes off the back of record high volumes in the December 2017 quarter."

Residential building activity volume fell 0.5 percent in the latest quarter, following a 0.8 percent fall in the December 2017 quarter. Non-residential building activity volume fell 1.5 percent, following a 3.8 percent rise.

Auckland and Canterbury drive construction activity

Together, Auckland and Canterbury accounted for $3.0 billion (56 percent) of the national value of total building activity in the March 2018 quarter.

"Total building work in Auckland was about $2 billion per quarter for the last year, while values in Canterbury were down from post-earthquake highs," Ms McKenzie said. "However, these values were boosted by higher construction costs."

In Auckland, the actual value of residential building work has been growing strongly, with the March 2018 quarter value of $1,389 million almost double that in the March 2014 quarter. Meanwhile, non-residential building work has shown moderate growth. Offices, education buildings, and accommodation buildings accounted for more than half of Auckland’s $632 million total non-residential building work in the March 2018 quarter.

In Canterbury, the actual value of building work in the latest quarter was $941 million - the lowest quarterly value since the March 2014 quarter. Residential building activity value in Canterbury has been generally falling since the March 2015 quarter. Non-residential building activity has been variable - but reached $440 million in the March 2018 quarter. The latest value was boosted by several projects on social, cultural, and religious buildings.